[India] Key rule change affecting salary, EMI and other important payments

The Reserve Bank of India (RBI) has introduced new rules regarding which salaries will be available on Sundays and gazetted holidays, India Today reports.

The RBI announced that the bulk payment system National Automated Clearing House (NACH) will function every day of the week, from August 1, 2021.

RBI governor Shaktikanta Das said that the measure is intended to enhance consumer convenience. This latest step will help make the processing duration shorter for salary credits, bill payments, insurance premiums and loan EMIs, which are usually delayed by holidays.

What is NACH?

NACH facilitates one-to-many credit transfers such as payment of dividends, interest, salary and pension. It is operated by the National Payments Corp. of India. The central banks noted that NACH has become known as one of the most prominent modes of direct benefit transfer (DBT) to a large number of beneficiaries.

Currently, it is operational only on bank working days meaning auto-debits are not processed during public holidays. The RBI governor said, "In order to further enhance customer convenience, and to leverage the 24×7 availability of real-time gross settlement (RTGS), NACH, which is currently available on bank working days, is proposed to be made available on all days of the week effective from August 1, 2021."

Bulk payment system NACH from August 1

In a statement, the RBI said, "NACH is currently available only on the days when banks are functional. In the interest of customer convenience, and to take advantage of the availability of RTGS on all days of the year, it is proposed to make available NACH on all days of the week throughout the year, effective August 1, 2021."

The Reserve Bank of India (RBI) has introduced new rules regarding which salaries will be available on Sundays and gazetted holidays, India Today reports.

The RBI announced that the bulk payment system National Automated Clearing House (NACH) will function every day of the week, from August 1, 2021.

RBI governor Shaktikanta Das said that the measure is intended to enhance consumer convenience. This latest step will help make the processing duration shorter for salary credits, bill payments, insurance premiums and loan EMIs, which are usually delayed by holidays.

What is NACH?

NACH facilitates one-to-many credit transfers such as payment of dividends, interest, salary and pension. It is operated by the National Payments Corp. of India. The central banks noted that NACH has become known as one of the most prominent modes of direct benefit transfer (DBT) to a large number of beneficiaries.

Currently, it is operational only on bank working days meaning auto-debits are not processed during public holidays. The RBI governor said, "In order to further enhance customer convenience, and to leverage the 24×7 availability of real-time gross settlement (RTGS), NACH, which is currently available on bank working days, is proposed to be made available on all days of the week effective from August 1, 2021."

Bulk payment system NACH from August 1

In a statement, the RBI said, "NACH is currently available only on the days when banks are functional. In the interest of customer convenience, and to take advantage of the availability of RTGS on all days of the year, it is proposed to make available NACH on all days of the week throughout the year, effective August 1, 2021."